December 6, 2022

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Delay in sugarcane crushing season affects export of raw sugar

Delay in the commencement of sugarcane crushing season has influenced exports of uncooked sugar despite contracting 1.eight million tonnes (MT), according to the All India Sugar Trade Association (AISTA).

The desire for uncooked sugar by refineries throughout the globe has long gone up according to market place experts. Refineries from Dubai, Saudi Arabia, and India much too are previously placing up desire for the commodity.

Having said that, sugar mills in States like Maharashtra are experiencing issues with the launching crushing season.

Exports

Praful Vithalani, Chairman AISTA reported in a statement that exports are getting performed primarily from the sugar mills of Maharashtra and Karnataka. “The recent ex-factory sugar prices in North India and Bihar have been in the assortment of ₹35,five hundred-37,five hundred for every ton. Consequently, the quantity exported by the mills in North India are negligible”. He extra that sugar exports of 18,290 MT to Sri Lanka have been performed even though the country is experiencing overseas trade issues.

As for every the provisional information with AISTA, actual physical sugar dispatches from sugar mills in season 2021-22 stand at 4,21,330 MT. This consists of 2,fifty,232 MT shipped in Oct 2021 as direct export, 26,444 MT shipping and delivery to a port-primarily based refinery in Oct 2021 ( deemed export). Sugar less than loading/ nominated is pegged at 1,forty four,654 MT.

Of the overall sugar export, about forty four for every cent of sugar has been exported to UAE and 21 for every cen to Bangladesh followed by Somalia (ten for every cent) and Iran (9.1 for every cent). Sugar export to Afghanistan stands at ten,455 MT that is 4.2 for every cent of the overall sugar export.

“As for every AISTA resources, sugar export discounts of about 18 lakh MT for 2021-22 season have been done so considerably. They all are without any subsidy,” Vithlani reported in a statement.

Sugar mills experiencing issues

According to the Indian Sugar Mill Association (ISMA), the overall acreage less than sugarcane in the country is approximated to be all around 54.37 lakh hectares in 2021-22 sugar season, which is about 3 for every cent increased than 2020-21 sugar season’s cane spot of fifty two.88 lakh hectares.

Uttar Pradesh is approximated to have a sugarcane spot of 23.08 lakh hectares, as versus 23.07 lakh hectares in 2020-21. Maharashtra’s cane spot has long gone up by about 11 for every cent in 2021-22, from 11.48 lakh hectares in 2020-21 to 12.78 lakh ha in 2021-22. Sugarcane spot in Karnataka is somewhat increased in 2021-22 at 5.11 lakh hectares as versus 5.01 lakh hectares in 2020-21.

Some mills in Maharashtra are yet to start off the crushing season as the State federal government has not permitted them to crush sugarcane owing to FRP dues. Farmer organisations in Maharashtra proceed to agitate for a just one-time payment of FRP. In Uttar Pradesh millers confront pressure from politicians to offer immediate payment of sugarcane ahead of State polls.